**ADM Sees Decline in Italian Gambling Tax Revenue for 2024**
Italy’s Customs and Monopolies Agency (ADM) has reported a decrease in tax revenue from gambling activities for the year 2024. According to its recently published Statistical Bulletin, the agency collected €8.05 billion from gambling licenses by the end of September 2024. This marks a 6% reduction compared to the €8.2 billion collected in the same period in 2023. The total gambling tax revenue for the entire 2023 was €11.62 billion, and 2024 might be the first year, excluding the pandemic-affected 2020, where a downturn is recorded.
The detailed report highlights a significant fall in Q3 2024, with gambling tax revenues down 16% to €2.22 billion compared to €3.3 billion in Q3 2023. This decline is attributed to a 26% year-on-year decrease in net gambling expenditure, dropping from €5.9 billion in Q3 2023 to €4.35 billion in Q3 2024.
In contrast to the gambling sector’s decline, the tobacco industry showed strength, generating €4.18 billion in Q3 2024, marking a 5.77% increase over the previous year. Within the gambling sector, gaming machines remained the largest contributor, yielding €910 million (41%) of tax revenue from €1.26 billion in net expenditure. Contributions also came from number games and lotteries, providing €870 million (39.08%), while betting brought in €180 million (8.17%), and other games contributed €260 million (11.64%).
As the year draws to a close, ADM has introduced a new licensing system for online gambling concessions, effective from 18 November 2024. This new scheme represents the most significant update to Italian online gambling regulation since 2011. Licenses are set for a nine-year term, priced at €7 million each, with an additional annual fee of 3% on gross gaming revenue, excluding taxes and winnings. Existing licenses can be extended for one year until 31 December 2024 under the Budget 2024 provisions.
New regulations will allow operators only one app per gambling product type and one website. Strict penalties will apply to skin websites promoting branded products. ADM expects around 50 operators to apply for new licenses, which is anticipated to bring in €350 million from concession fees and an annual €100 million from fixed license fees.